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CHAPTER 1
INTRODUCTION OF THE REPORT
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1.0 INTRODUCTION OF THE REPORT
1 Introduction:
Internship is an important part of education system as like as BBA program and it helpsthe students to know with the actual world of profession and to relate the real world withwhat they had studied and learned so far. Just acquiring more real experience andknowledge. I also did an internship program for two months. And I choose madhumatisalt industries ltd for my internship which is a part of united group. I was appointed towork in the marketing division.
1.1 Statement of the Problem
I was asked to do a report to find out the customer satisfaction of its product. Myresponsibilities were to find out the current status of the product in the market. And alsofind out the factors which have a great impact over customer satisfaction compared withother competing firm. After doing a competitive analysis of the problem, I will have tocomment on the future steps that the company needs to take in the future.
1.2 Broad Objective
The topic of the report is ``Measurements of Customer Satisfaction of Madhumati salt’’.My objective is to find out the current customer satisfaction, and also find out the factor which has a great effect over it. I also had to do cost and comparative analysis on thecompetitors products and also find out their condition in market. Then the final part of my report will be recommended on the products on the basis of the findings.
1.3 Specific Objectives
To show the current customer satisfaction level.
To identify the problems of customer dissatisfaction.
To identify the efficiency of company and also their peoples.
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1.4 Research Question
Developed refined statements of the specific components of the problem and this
component of the problem define the problem in specific terms.
1. Which of the following brand do you prefer to buy?2. From which brand you do get more satisfaction?3. if you prefer MS brand, tell the reason of preferring it?
1.5 Research Methodology: Research Methodology generally, refers the systematicway to solve the research problem. Though it wasn’t my research work .As the internshipreport , I follow some research methodology steps to complete my practical knowledge
base report.
1.5.1 Research Approach
This research was an exploratory research based on survey approach. Littleresearch is done before in this area of Madhumati Salt Industries.I tried to understand
problem more preciously and to identify alternative course of action.
1.6 Sources of secondary data
Secondary data are the data that collected for some other purpose rather than the problemin hand .These data can be located quickly and inexpensively. But most often theobjectives nature and methods used to collect the secondary data may not be appropriatefor the present problem. But they can be used for ready reference for any informationregarding the problem. For the problem that is being faced by the company the followingsecondary data will be used for ready reference.Sources of secondary data are as follows:
The InternetCompany annual reportDesk work at the company head officeConversation with employees of the company
1.7 Planning for Primary Data collection
We know that the main customer of salt is the general people. Butin the case of serve problems. I did work on distribution agent of Madhumati Salt .The agent will be askedquestions to find out the reasons behind the problems and to find a solution through their answers.
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1.8 Contact method
After the preparation of the questionnaire, it has taken to the consumer for interview andsome are answered questionnaire over phone to find out the reasons behind the problems.As a consumer is the main customers of Madhumati Salt, the main problem and thesolutions can be retrieved through them with a suitable questionnaire.Questionnaire more emphasized on promotion, distribution and covered few other part.
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2.1 Sampling plan
2.1.1Sampling Unit
Usually the consumers are more aware about the product that is available in market other than the whole seller and retailer. So all the data collected from the consumer.
2.1.2Sampling Size
Madhumati Salt has consumers all over the Bangladesh. So it is difficult to cover all theconsumers due to time limit. I cover for the study 30 consumer as sample size.
2.1.3Sampling Procedure
For this research, I follow convenience sampling under no probability sampling.
2.2 Data processing And Analysis
I used descriptive statistical tools ‘excel’ for the processing and analyzing of data.
2.3 Limitations
Every good thing in life has some limitations. And this report also has some limitationand also some problems.Time is always a main problem in this world no matter how much time is given it turnsout to be insufficient. The given two month to complete the report is not good enough
time, but the report would have been better if more time would given.There is lot numbers consumer in Bangladesh. But due to the shortage of time manycould not covered.We know that business people are always very busy So from the consumer s answer sthat given within short time may not be true what they hand in mind.Many consumers’ agents may have biased opinion about the company and may not havegiven the right answer.Most of the questionnaire filled up over phone and respondents felt irrigate to answer on
phone.
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3.0 LETERATURE REVIEW
Customer SatisfactionCustomer satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectations.
Customer Retention The overall objective of providing value to customers continuously and more effectivelythan the competition is to have highly satisfied customers, this strategy of customer retention makes it in the best interest of customers to stay with the company rater thanswitch to another firm.. In almost all business situations, it is more expensive to win new
customer than to keep existing ones.Studies have shown that small reduction in customer defections procedure significant
increase in profits because (1) loyal customers buy more product (2) loyal customers areless price sensitive and pay less attention to competitors advertising,(3) servicing existingcustomers ,who are familiar with the firms offerings and process, is cheaper and,(4) loyalcustomers spread positive word of mouth and refer other customers.Furthermore marketing efforts aimed at attracting new customers are expensive, indeedsaturated markets, it may be impossible to find new consumer.
Competitive Analysis
The process of identifying key competitors assessing their objective strategic strengthsand weakness, and reaction patterns, and selecting which competitor to attack or avoid.
(Principles of Marketing – Philip Kotler , Eight Edition, Page 557)
Distribution Channel and Center
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. A large highlyautomated warehouse designed to receive goods from various plants and suppliers, takeorders, fill them efficiently, and deliver goods to customers as quickly as possible.(Principles of Marketing, Philip Kotller , Tenth Edition; Page GLOSSARY G3)
Promotion
Promotion or promotional activities refer to the set of activities undertaken by a companyto boost the sales of their products for both short and long term. These steps may includeadvertising, sampling, public relation etc.
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Promotion is an attempt to influence and more specifically, promotion is the element inan organization’s marketing mix that serves to inform, persuade and remind the market of
a product and organization or the organization selling it, in hopes of influencing therecipients, belief and behavior. (Principles of Marketing – Philip Kotler , TenthEdition; page 456 )
Brand
A name, term, sign, symbol, or design, or a combination of these intended to identify thegoods or service of one seller or group of sellers and to differentiate them from those of competitors. (Principles of Marketing- Philip Kotler , Eight Edition; Page 245)
Research question
Research question are refined statements of the specific components, of the problem,research question ask what specific information is required with respect to the problemcomponents. ‘Naresh K. Malhotra’ (page 52)
Exploratory research
One type of research design that has as it s primary objectives the provision of insightsinto and comprehension of the problem situation confronting the researcher . ‘Naresh k.Malhotra’ Page 83.
Non probability
Sampling techniques that do not use chance selection procedures rater they rely on the personal judgment of the researcher. ‘Naresh K. Malhotra(Page 334)
Convenience sampling
A non probability sampling techniques that attempts to obtain a sample of convenientelements. Naresh K. Malhotra (Page 334)
Lekert scale
Lekart scale that requires the respondent to indicate the degree of agreement or disagreement with each of a series of statements about the stimulus objects. Naresh K .Malhotra (Page 271)
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CHAPTER 4
BACKGROUND OF THE COMPANY
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4.1 Company Background
Before 1980’s in the Bangladesh people were not aware of iodized salt. Only unwrap saltused to sell in the market place. BSCIC Bangladesh small cottage industries andcorporation ‘ promoted iodized salt and they supplied iodine chemical and mixtureequipment free in earlier time but from the few year before BSCIC imposed price oniodine. They promoted iodized salt because of disease which caused by iodine deficiency.Many people in our country have been suffered from disease which is reason for iodineand still some people are suffering. Now there is around 167 salt factory but somefactories are not in production.
Madhumati salt industries is establish in 1994 which is a sister concern of united groupwhich is a leading product in southern part of our country. The production capacity is25000 metric tons where as the total demand for salt is 1200000 metric ton in our countryeach year. They received award from BSCIC many times for providing right amount of iodine. By next few year they are going to launch new Madhumati salt using mostadvance technology and expecting free flow, snow white, dry iodized salt. And thecapacity would be approximate 100 metric ton per day. Where as the company expectingdramatic improvement of their market share than they have currently.
4.2 Company Mission
We know that every company must have some mission and based on that mission theymove ahead to achieve their objectives and goals. Madhumati salt is no different in thiscase. They also have a mission statement stands as:“Our approach is to ensure health and prevent from disease which caused by iodinedeficiency, by manufacturing of highest quality salt at affordable price and reaching outeven to the remotest areas by proper distribution network.
4.3 Sales Center
The main objective of the company is to make sure that the product reaches to theremotest of the areas. And for this reason they developed a good channel of distribution.Besides the channel, there are three sales centers in all over Bangladesh that deal with thedistribution of the company products. These sale centers situated in Dhaka, khulna, andchittagong.
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4.4 Competitor’s information
So many competitors have been Increased over the last few year and among them freshis the market leader .As a new company globe , Ali baba, titas , grabbed good market
share . A part from the dolphin salt , sundaorban salt , pubali salt are the competitors of madhumati salt
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CHAPTER: 5
ANALYSIS OF COMPANY’S CUSTOMER SATISFACTION
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5.1 Comparative analysis among the competitions of Madhumati salt industry:Customer satisfaction levels about different salt industries are represented in the
following figure &table:
05
101520253035
% Of response
response of thecustomer
Madhumati saltGlobe saltSundarban saltpubali saltTitas saltOthers
Figure: 1
Product Percentage of response
Madhumati salt 25
Globe salt 20
Sundorban salt 35
Pubali salt 06
Titas 07
Orhers 07
Table: 1
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Product Percentage of response
Low price 55
Good will of the company 25
Availability of product 05
Better quality in market 10
Others 05
Table: 2
Customer mainly choose Madhumati salt because of low price. Its master cartoon’s priceis lower than sundarban and globe salt. And due to low price it has greater demand in themarket place especially in rural area.
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5.3 Reason For Not Choosing Madhumati Satt
0
5
10
15
20
25
30
35
% of theresponse
response of the customer
Poor packaging
Poor quality
Brand name is notknown
Distribution of thecompany is notgoodOthers
Figure: 3
Reason Percentage of Response
Poor packaging 30
Poor quality 35
Brand name is not known 15
Distribution of the company is not good 10
Others 10
Table: 3
Most of the respondent claim for poor packaging of Madhumati salt , When labor dohandle to load and unload the product some time its get burst and they do not havescalene machine to seal the bag again. On the other hand Globe salt did come up withlamination package which is rich, less chance to get burst and attractive and there is no
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Chance to have food contamination. So it catches the attention of customers. Brandawareness is another reason where customers are less aware about the Madhumati.
5.4 Satisfaction Level with Availability of Madhumati Salt
05
101520253035404550
% of theresponse
response of the customer
Highly satisfied
Neutral
Highlydissatisfied
Figure: 4
Satisfaction level Percentage of response
Highly Satisfied 40
Neutral 48
Highly dissatisfied 12
Table: 4
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Customers are not satisfied with the availability of Madhumati salt, some time they doface problem of on time buy and some time company do stop their production. Actuallythis thing happens due to scarcity of raw materials. Raw salt procure from cox’s bazaar ,
kutubdia, Mohashkhali, Teknaf, Baskhali and these are the only area where as 95% salt procure here. And all companies depend on these raw materials. When the scarcityappear that time price of raw salt goes up. If the price of salt goes up then the companycan not continue production because it increases production cost. And if they increase of Madhumati salt then low sales appear.
5.5 Satisfaction Level With Availability Of Other CompaniesProduct
0
5
10
15
20
25
30
35
40
% of theresponse
response of the customer
HighlysatisfiedNeutral
Highlydissatified
Figure: 5
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Satisfaction level Percentage of response
Highly satisfied 35
Neutral40
Highly dissatisfied 25
Table: 5
Unlike Madhumati salt most of the company does not face problem to continue their production and if we look to the main competitor Globe which is situated in Meghnaghat.They Are also situated in the center part of the country and do not face problem for availability.
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Then came the question about the satisfaction level with Madhumati’s promotionalactivities. Hardly 04 percent of the customer was extremely satisfied with the
promotional activities of the company. Only 16 percent of customer were satisfied withthe promotional activities of Madhumati salt . 20 percent of the customer had average
feelings And 40percent of the customer were not satisfied at all.
5.7 Satisfaction level of other companies promotional activities.
0
5
10
15
20
25
30
35
40
% of theresponse
response of the customer
ExtremelysatisfiedSatisfied
Average
Not satisfied
Extremelydissatisfied
Figure: 7
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Satisfaction level Percentage of response
Extremely Satisfied 22
Satisfied 40
Average 20
Not satisfied 12
Extremely dissatisfied 06
Table: 7
The scenario is totally different when we look at the tally of competetior’s satisfactionlevel. 40 percent of the respondents are satisfied with the promotional activituy and 20 percent of the respondents said that they had an average feelings about the promotionalactivities of the competitors.
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5.8 Satisfaction level of MS Company’s product quality
0
5
10
15
20
25
30
35
40
% of theresponse
Response of the customer
ExtremelySatisfiedSatisfied
Average
Not satisfied
Extremelydissatisfied
Figure: 8
Satisfaction level Percentage of response
Extremely Satisfied 04
Satisfied 16
Average 20
Not satisfied 40
Extremely dissatisfied 20
Table: 8
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The scenario is totally different when we look at the tally of competitor’s satisfactionlevel. 28 percent of the respondents are satisfied with the product quality and 41 percentof the respondents said that they had a average feelings about the product quality of thecompetitors. And only 10 percent of the respondents are not satisfied about the product
quality.
5.10 Satisfaction level of sales people
0
5
10
15
2025
30
35
40
% of theresponse
response of the customer
ExtremelysatisfiedSatisfied
Average
Not satisfied
Extremelydissatisfied
Figure: 10
Level of satisfaction Percentage of response
Extremely satisfied 0
Satisfied 05
Average 25
Not satisfied 40
Extremely dissatisfied 30
Table: 10
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Then we asked the distributor what they thought about the sales person. 05 percent of therespondents were satisfied with the sale people and 40 percent were not satisfied with thesales people. 25 percent have average feeling and 0 percent has extremely dissatisfiedfeeling. Hardly have they visited distributors and their task also to find out that every
retail stores have Madhumati salt and also provide market report to the company.
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CHAPTER: 6
FINDINGS
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6.7 Higher profit margin influence retailer to sale other company’sproduct
Not all customer sale globe and Mollah salt. we found few retailer sales only MadhumatiSalt and those who sale Mollah,globe and other salt they prefer to sell globe and Mollahdue to higher profit margin. From each carton of Mollah salt they receive normally .50tk and from globe they receive .60tk and from Madhumati they receive only .30tk. But this
profit margin is not fixing.
6.8 Less frequent visit by sales people
Sales people are responsible to find that every retail stores have Madhmati salt and provide market report to the company. But sale people visit rarely the distributor marketarea. They also responsible for out door advertising like billboard, neon sign and wallwriting etc.
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CHAPTER: 7
CONCLUSION
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7.0 CONCLUSION
In this part conclusion are drawn and supported on the basis of the findings. Based onresearch findings lack of proper promotional strategy was undertaken by the companycompared to the competitors. Highest percentage of respondents showed satisfaction onthe other company’s promotion where as respondents have average feeling towardsMadhumati salt’s promotional activities.
By interviewing Respondents, its revealed that they prefer more to receive gifts andrewarded ceremony and this promotional activity is already performed by other company,here Madhumati salt considered lack of proper promotional strategy compare to thecompetitors.
Poor production capacity and scarcity of raw materials is another problem for Madhumatisalt. Madhumati salt is not available and can not provide to the distributor on the timethrough out the year. Highest percentage of respondents showed that product is notdelivered on time.
Respondents believe that poor packaging leads to low sales for madhumati salt. The package of madhumati salt is not tough enough and the printing quality is not good andclear. They do face problem with the package like when labor handle product for loading and unloading sometimes its get burst or leak.
Besides these factors there are some factors which are playing for low sales such as lack of advertising, inefficient sales person and less frequent visit by sales person, higher transportation cost etc. To improve their sales company should consider this factor otherwise sale will decrease day by day.
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CHAPTER: 8
RECOMMENDATION
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8.4 Give discount or coupons
There is not a single person who does not like gift. Most of the respondent prefer couponsor low price. When retailer sales product to the customer, customer expect low price
product. So discount or low price sometimes make them happy and hardly hesitateto buy other product. Provide discount or coupons to the customer for buying every five
packet salt. And the gift could be t-shirt,toys,stiker etc.
8.5 Arrange reward ceremony program
Every six month Company can conduct reward ceremony program for the whole seller.Whole seller will rewarded based on their performance. Who will sell the highest amountthen he would be given rewarded best distributor of the year. This thing will encouragewhole seller to sale more Madhumati salt. In this program they can talk about the
product. Market situation, about competitors. It is a good way to gather information aboutthe current market customer Satisfaction.
8.6 Development of new unit
Company face some problem to supply their product in all over the country because their one production unit. Their production unit is not in central place in the country so theycan not capture all over the country’s market. Their only one production unit situated inDamodor, Phultola, in Khulna. If the company want to fully satisfied to his consumer then development of a new plant is very much essential.
8.7 Increase production speedIt is another important recommendation to satisfy the customer. Now the Madhumati SaltCompany produce high amount of industrial salt. So they can not satisfy their consumer
properly. They should to provide lot of interest to his consumer and also about their satisfaction. Due to the production of industrial salt, they can’t produce that amount of salt which are needed by the consumer in market place.
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APPENDIX
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QUESTIONNAIRE
Customer Name:
Location:
Date:
Q. Which of the following brand do you prefer to buy? a. Madhumati salt
b. Globe salt
c. Sundarban salt
d. Pubali salt
e. Titas f. Others……..
Q. If you prefer MS brand ,tell the reason of preferring it?
a. low price
b. Goodwill of the company
c. Availability of product
d. Better quality in market.
e. others……….
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Q. From which brand you do get more satisfaction?
a. Madhumati salt
b. Globe salt
c. Sundarban salt
d. Pubali salt
e. Titas f. Others……..
Q. If you don’t buy MS product, the reason?
a. Poor packaging
b. Poor quality
c. Brand name is not known
d. Distribution of the company is not good
E. others……
Q. Do you satisfied with the availability of MS product?
Highly 1 2 3 4 5 6 7 HighlySatisfied Dissatisfied
Q. If you are satisfied with other company’s product, please mention the name of that company.
a. ……………………………………………………………………………………..
Q. Mention the satisfaction level of availability of other company’s product .
Highly 1 2 3 4 5 6 7 HighlySatisfied Dissatisfied
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Q. Are you satisfied with MS product quality?
a. Extremely Satisfied
b. Satisfied
c. Average
d. Not satisfied
e. Extremely dissatisfied
Q. Are you satisfied with other company’s product quality?
a. Extremely Satisfied
b. Satisfied
c. Average
d. Not satisfied
e. Extremely dissatisfied
Q. Do you satisfied with MS promotional activities?
a. Extremely Satisfied
b. Satisfied
c. Average
d. Not Satisfied
e. Extremely dissatisfied
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Q. Are you satisfied with the other company’s promotional activities?
a. Extremely satisfied
b. Satisfied
c. Average
d. Not satisfied
e. Extremely dissatisfied
Q. Are you Satisfied with sales people?
a. Extremely satisfied
b. Satisfied
c. Average
d. Not satisfied
e. Extremely dissatisfied
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Tables used in data collection
Q. Which of the following brand do you prefer to buy?
Product Percentage of response
Madhumati salt 25
Globe salt 20
Sundarban salt 35
Pubali salt 06
Titas salt 07
Others 07
Q. If you prefer MS brand ,tell the reason of preferring it?
Reason Percentage of response
Low price 55
Goodwill of the company 25
Availability of product 05
Better quality in market 10
Others 05
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Q. From which brand you do get more satisfaction?
Product name Percentage of Response
Madhumati salt 25
Globe salt 20
Sundorban salt 35
Pubali salt 06
Titas salt 07
Others 07
Q. If you don’t buy MS product, the reason?
Reason Percentage of response
Poor packaging 30
Poor quality 35
Brand name is not known 15
Distribution of the company is good 10
Others 10
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Q. Do you satisfied with the availability of MS product?
Highly
satisfied(1,2,3),Percentage of response
Neutral 4, Percentage of
response
Highly dissatisfied(5,6,7),
Percentage of response
40 48 12
Q. If you are satisfied with other company’s product, please mention thename of that company
.
NamePercentage of Response
Madhumati salt 25
Globe salt 20
Sundabon salt 35
Pubali salt 06
Titas salt 07Others 07
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Q. Are you satisfied with MS promotional activities?
Reason Percentage of response
Extremely satisfied 04
Satisfied 16
Average 20
Not satisfied 40
Extremely dissatisfied 20
Q. Are you satisfied with the other company’s promotional activities?
Reason Percentage of Response
Extremely satisfied 22
Satisfied 40
Average 20
Not satisfied 12
Extremely dissatisfied 06
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Q. Satisfaction level of sales people.
Reason Percentage of ResponseExtremely satisfied 00
Satisfied 05
Average 25
Not satisfied 40
Extremely dissatisfied 30
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